Last week, Oil price went above $50 a barrel – at least briefly. This week, the price of oil reduced by a little much Which is not all that bad compared to previous lows…WTI crude almost at 47$ and Brent crude almost 48$.
NEWS AROUND THE OIL INDUSTRY.
North American LTO developers are putting rigs, service equipment and personnel back to work.
This may sound good But in another way sound bad If We remember that LTO production was one factor that contributed greatly to the 2014 oil price collapse. This was observed that when the U.S LTO production increased to 4 million barrels per day (b/d) in 2014.
With this in mind, it is only right to say that the this might be another foundation for another oil price collapse.
One of the Caribbean’s largest oil refineries in San Nicolas, Aruba, the Caribbean is set to Re open.
The refinery has sat idle for years. Now a new deal for a 15-year lease with the option for a 10-year extension has been signed between the Aruban unit of oil company Citgo and the Aruban government.
Niger Delta militants agree for peace talk.
In Nigeria, the Niger Delta Avengers, the militant group that has been attacking oil pipelines in the Niger Delta region, which has reduced Nigeria’s daily oil production to 680,000 barrels per day allegedly agreed to dialogue with the Nigerian government to end the violence.
Days after the alleged peace talks, the Niger Delta militants claim another attack on a state-run NNPC oil pipeline in the Oruk Anam Local Government area of Akwaibom, Nigeria.
And yet another militant group has publicly emerged in the Niger Delta in the form of the Ultorogu Liberation Movement. This group is now threatening to bring down the Otorogu Gas Plant which is the largest plant in West Africa.
If this goes on Nigeria’s oil production might further reduce by more than 50% as the militants claim that the government is not being sincere with their peace agreement.